Togo Transfer Pricing

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Who this applies to

The arm's length rule applies when an enterprise transacts commercially or financially with an associated enterprise in Togo or abroad. Majority capital/vote ownership, effective decision power and common control create the statutory links. A transfer to a privileged foreign tax jurisdiction does not require the ordinary dependence/control condition. The documentary thresholds below do not exempt smaller enterprises from substantive pricing adjustments or specific requests. CGI arts. 104, 106 ter.

Rates, bands and thresholds

Item and conditions	2026 rule	Official source
Annual simplified declaration	Own annual turnover excluding tax or gross assets greater than CFA 500 million; also specified direct/indirect majority holding or ownership links to an enterprise over that threshold	CGI art. 105
Full documentation ready at audit start	Own annual turnover excluding tax or gross assets greater than CFA 1 billion; also the specified majority holding/ownership tests	CGI art. 106
CbCR primary parent threshold	Prior-year annual consolidated turnover at least CFA 492 billion, plus consolidation and ultimate-parent conditions	CGI art. 106 bis(1)
Full documentation formal-notice cure	15 days to supply or complete documents	CGI art. 106(5)
Outside-threshold specific request	30-day response; insufficient/inaccurate reply followed by 15-day formal notice	CGI art. 106 ter

The base

1. Map legal ownership, voting rights, actual decision-making and common controllers. List domestic as well as foreign related parties, and separately test counterparties in privileged foreign tax regimes. CGI art. 104.
2. Identify controlled goods, services, loans, guarantees, licences and other dealings. Record the actual terms, functions, assets and risks; establish comparable independent conditions in comparable circumstances. An amount on an invoice is not evidence of arm's length value. Quantify any indirect profit transfer by comparison to the result without the control relationship. CGI art. 104.
3. Apply each filing test separately. “Greater than” means equality alone does not cross the simplified/full threshold; gross assets or a qualifying parent/subsidiary link can still trigger it. The full file contains group information and enterprise-specific information and never substitutes for underlying transaction evidence. CGI arts. 105-106.
4. For CbCR, verify all parent/consolidation conditions, not only turnover. Secondary filing includes specified foreign-parent and systemic-failure cases. A foreign surrogate filing exempts the Togo entity only if every art. 106 bis(4) condition holds, including an operative exchange arrangement, actual exchange and local notification identifying the reporting entity/jurisdiction. A group can designate one Togo entity for multiple local members under the statutory notification rule. CGI art. 106 bis.
5. Reconcile the documented arm's length result to corporate taxable profit, preserve contracts and evidence, and separately track any request, formal-notice or annual-filing clock.

Deadlines and filing

The simplified annual declaration is due within the LPF art. 49 corporate filing deadline; the 2026 law routes the corporate result through GUDEF. Full documentation must already be available in paper or electronic form when the accounting audit begins. CbCR is filed electronically within twelve months after fiscal year end. CGI arts. 105-106 bis; LF2026 art. 21, LPF art. 49.

Prepare the control map and schedules first, obtain the ministerially prescribed simplified/full/CbCR formats, reconcile them to the accounts and submit through the competent OTR channel, preserving the receipt and the reporting-entity notification. The current prescribed files, exact portal screens and exchange-country list were not obtained. An unsupported generic OECD template does not close this procedural gap.

Penalties and interest

LPF art. 113(3) provides CFA 10 million for late/incomplete/inaccurate simplified declarations. Failure after formal notice to supply full documentation incurs 0.5% of the affected transactions, minimum CFA 10 million for each audited exercise. CbCR default is CFA 50 million; art. 106 ter request/formal-notice default is CFA 5 million per relevant exercise. These documentary sanctions are distinct from a substantive profit adjustment and applicable income-tax penalties. LPF art. 113(3).

Cross-border points

The pricing and documentation rules cover local and foreign related enterprises. Do not infer relief merely because a foreign parent has a file or because a treaty exists. Confirm an actual exchange agreement/list and every surrogate exemption condition before omitting local CbCR. Any corresponding adjustment or competent-authority remedy needs separate verification in the applicable instrument. CGI arts. 104-106 bis.

Two worked examples that recompute

An established ordinary company sells 100 units to an associated enterprise at CFA 800 each; reliable independent comparables establish CFA 1,000 on the same conditions. The indirect transfer is CFA 20,000, increasing declared profit of CFA 40,000 to CFA 60,000. At the ordinary corporate rate linked in the CIT Guide, incremental profit tax is CFA 5,400 before MFP, credits or other adjustments. The example assumes the comparability finding has already been substantiated.

name: Arm length sale adjustment
inputs:
  units: 100
  controlled_price: 800
  comparable_price: 1000
  declared_profit: 40000
steps:
  - adjustment: units*(comparable_price-controlled_price)
  - adjusted_profit: declared_profit+adjustment
  - incremental_is: adjustment*0.27
expected:
  adjustment: 20000
  adjusted_profit: 60000
  incremental_is: 5400

After the statutory full-documentation formal notice expires, missing documents concern CFA 500 million transactions in one exercise. The percentage gives CFA 2.5 million, so the statutory minimum makes the fine CFA 10 million. If the affected transaction amount is CFA 3 billion, the percentage gives CFA 15 million and controls instead. The decision concerns the penalty floor, not whether the documentation obligation arose.

name: Documentation penalty floor versus percentage
inputs:
  affected_small: 500000000
  affected_large: 3000000000
steps:
  - small_percentage: affected_small*0.005
  - small_fine: max(small_percentage,10000000)
  - large_fine: max(affected_large*0.005,10000000)
expected:
  small_percentage: 2500000
  small_fine: 10000000
  large_fine: 15000000

Ask the client first

Obtain turnover excluding tax, gross assets, the prior consolidated group turnover, ownership/voting/control maps for every relevant enterprise, the exact fiscal year, transaction schedules, comparables, group files, reporting-entity notices and foreign filings. Obtain OTR audit notices and receipt dates, the operative exchange-country evidence and any formal request before computing response deadlines.

Sources

Source and actual read scope	URL	Read on
CGI (loi n°2018-024) and LPF (loi n°2018-025), OTR consolidation 2025, archived official copy. Relevant articles specified above, including neighbouring conditions; actual read scopes in the source manifest. Official live download returned 404 after site migration. Current-year archived OTR PDF read locally.	https://web.archive.org/web/20260702000000id_/https://www.otr.tg/index.php/fr/documentation/sur-les-impots/code-general-des-impots/600-code-general-des-impots-livre-des-procedures-fiscales-mis-a-jour-2025/file.html	2026-11-01
Loi n°2025-002 du 31 décembre 2025, finances 2026. Art. 2 and fiscal provisions arts. 7-21, especially the replacement CGI/LPF text in art. 21; scanned PDF read using local OCR with material provisions checked against page images.	https://finances.gouv.tg/wp-content/uploads/2026/01/Loi-de-finances-de-lannee-exercice-2026.pdf	2026-11-01

Not yet confirmed: Current ministerial formats for simplified/full documentation and CbCR; current electronic filing screens; operative exchange-country list and evidence needed for actual surrogate exemption; accepted pricing-method guidance, advance arrangements and corresponding-adjustment procedures. TP is therefore partial in procedural operation, although the substantive rule and thresholds above are established.